Microsoft Buys Media-Streaming Startup For Xbox

The company has purchased R2 Studios, a start-up specialising in streaming digital media to TVs.

By IGN Staff

Microsoft has acquired a home entertainment startup to increase the digital media capabilities of the Xbox, according to a new report.

The Wall Street Journal explains that the company has bought R2 Studios for an undisclosed amount along with patents related to controlling electronic devices. It's believed that both Google and Apple expressed interest in the company.

R2 Studios was established in May 2011 by Blake Krikorian, who will now be joining Microsoft with a small team. The company is reported to have been working on creating technology that would allow digital media to be displayed and distributed on TVs, as well as home automation devices to allow users to remotely control such things as the heating and lighting of their homes with an Android app. Previously, Krikorian founded the company that created the Slingbox, a device which allowed TV to be streamed and controlled via a computer.

So, what does all this mean? Well given the fact that Krikorian is reportedly joining Microsoft's Xbox division, it seems likely that the company is planning to further establish its consoles as home entertainment centres rather than just games machines.

The question has to be asked though, with Netflix, Comcast, HBO and YouTube already available through Xbox Live, is there really that much more that's needed? Could this maybe be Microsoft's first foray into creating something similar to Apple's airplay that will work with its Surface or Windows Phones?